Kmart Group – the company behind department stores Kmart and Target – has reported an earnings before tax (EBT) of $1.046 billion in FY25, nudging up from $958 million in FY24.
This comes alongside a $322 million lift in revenue to $11.4 billion, with the nudge up in EBT coming despite a slight lift in interest on lease liabilities to $84 million.
Kmart Group’s total sales overall increased 3.4 per cent for the year, with comparable sales increasing 3 per cent. In the second half, total sales increased by 5.0 per cent and comparable sales increased by 4.4 per cent.
According to the group, sales growth in the second half reflected good results across all key categories, particularly home.
“Kmart Group continued to benefit from its strong value credentials, with units sold, transaction volumes and customer numbers all growing on the prior year,” Kmart Group’s overarching parent Wesfarmers reported in its trading update today.
“Earnings growth for the year reflected the solid trading performance and a focus on productivity and cost control. Productivity benefits were delivered through the integration of Kmart and Target’s systems and processes, and ongoing digitisation of operations across stores, sourcing and supply chain. These benefits mitigated the impact of ongoing cost of doing business inflation.”
Kmart Group’s performance was also bolstered by a new Plan C format store rollout by Kmart, now at five stores and with the group reporting early positive trading results. Kmart is also digitising store processes through the expansion of RFID capabilities.
“Further enhancements to Kmart Group’s digital platforms improved customer engagement and supported strong growth in app utilisation, with monthly active app users doubling on the prior year to more than 1.3 million,” the group reported.
“The modernisation of the group’s supply chain also progressed, including the transition of two customer fulfilment centres from Catch to Kmart Group, and the commencement of the planning phase for the Next Gen omnichannel facility in New South Wales.”
Further to this, Kmart Groups’ Anko brand has expanded into new markets globally, with two Anko stores opened in the Philippines and new partnerships secured with major global retailers for the distribution of Anko products.
Currently, Anko Global revenue and earnings are immaterial to Kmart Group results.
Kmart opened one new store during the year. There were 447 stores across Kmart and Target as at June 30, 2025.
Kmart Group’s total revenue lift added to a 3.4 per cent rise in revenue for Wesfarmers, which hit $45.7 billion. Alongside Kmart Group, Wesfarmers also manages Workwear Group, Bunnings and Officeworks, alongside healthcare retailers such as Priceline Pharmacy and also covers resources in chemicals, energy and fertilisers.
The overarching company also reported a net profit after tax (NPAT) of $2.9 billion, up from $2.5 billion in FY24.
Wesfarmers managing director Rob Scott said the company’s earnings growth in challenging trading conditions is a credit to its team members.
“In a year when many retail and business customers faced cost-of-living and cost-of-doing-business pressures, the group’s divisions delivered even greater value, service and convenience for customers,” Scott said. “This was achieved through the delivery of productivity initiatives, which supported investment in customer value propositions and helped mitigate higher costs.
“The group’s largest divisions continued to perform well, with Bunnings and Kmart Group’s everyday low prices and market-leading offers driving sales and earnings growth. The retail divisions also benefited from new and expanded ranges and offerings that helped grow their addressable markets.”